SUPREME COURT OF INDIA
R.S. SARKARIA AND O. CHINNAPPA REDDY, JJ.
Bangaru Narasingha Rao Naidu etc. etc., Appellants
Versus
The Revenue Divisional Officer, Vizianagaram, Respondent.
Civil Appeals Nos. 1719 to 1720 of 1969
Decided on 9-10-1979.
Land Acquisition Act, 1894 - Section 4 and 18 - Land - Sale Deeds - Calculated Average Price - Compensation - Land of extent of one acre 31566 square ft. belonging to appellants in these two appeals was acquired for purpose of constructing houses for sweepers and scavengers who had been uprooted from where they were previously living as a result of extension of K. S. Hospital - Land Acquisition Officer first separately calculated average price of land under deeds of sale of land in neighbourhood in each of three years and thereafter took average of three figures so contained - He awarded compensation at that final average rate which was Rs. 6.14 annas per sq. yard - Whether objection was raised or not before Land Acquisition Officer – Held, Court is unable to understand what High Court precisely meant by this statement - If High Court meant that claimant should have opposed consideration of these documents by Land Acquisition Officer a clear answer is that they did not have opportunity of doing so since Land Acquisition Officer did not inform them in advance on which documents he proposed to rely for making his award - It was open to claimants to adduce evidence before Court in order to point out that Land Acquisition Officer ought not have relied upon transactions on which he relied and that he should have been guided by some other transactions – Court notice that conclusion of High Court was considerably coloured by statement repeatedly made that claimants did not object to these documents before Land Acquisition Officer – Court is satisfied that High Court should not have interfered with award of compensation made by learned Subordinate Judge for acquired land at rate of Rs. 11/- per sq. yard - In this regard, judgment of High Court is set aside and judgment of Trial court is restored - In regard to certain other matters relating to interests and compensation for severance etc, no argument was advanced before Court and judgment of High Court is confirmed to that extent - Appeals partly allowed.
JUDGMENT
CHINNAPPA REDDY, J.:— Pursuant to a notification dated 26th Nov. 1952, issued under Sec. 4 of the Land Acquisition Act, land of the extent of one acre 31566 square ft. in T. S. Nos. 1123/1A and ID and 1123/1B and ID belonging to the appellants in these two appeals was acquired for the purpose of constructing houses for sweepers and scavengers who had been uprooted from where they were previously living as a result of the extension of the K. S. Hospital in Visakhapatam. The Land Acquisition Officer first separately calculated the average price of land under deeds of sale of land in the neighbourhood in each of the three years 1950, 1951 and 1952 and thereafter took the average of the three figures so contained. He awarded compensation at that final average rate which was Rs. 6.14 annas per sq. yard. On references made under Sec. 18 of the Land Acquisition Act at the instance of the claimants the learned Subordinate Judge of Visakhapatnam enhanced the compensation to Rs. 11/- per sq. yard. The learned Subordinate Judge. primarily, took into account Exhibits B11 and B12 which were sale deeds dated 12th Sept. 1950 and 29th Jan. 1951, in respect of parcels of land out of the very acquired land. Before the learned Subordinate Judge, the Land Acquisition Officer, placed reliance upon certain transactions of sale in respect of plots of land in the neighbourhood of the acquired land. In regard to the plots of land covered by Exhibits B1 to B10, the learned Subordinate Judge expressed the view that those plots of land were purchased by the very squatters who were in possession of the land and, therefore, they did not fetch a good price. Similarly in regard to the plots of land covered by Exhibits B13, B14 and B16 the learned Subordinate Judge observed that they fetched a low price because they were very near the public latrine. The land Acquisition Officer preferred appeals to the High Court of Andhra Pradesh. The High Court reduced the compensation to that awarded by the Land Acquisition Officer. The High Court while not disagreeing with the views of the learned Subordinate Judge that Exhibits B11 and B12 were genuine transactions, also took into consideration the transactions covered by Exhibits B1 to B10, B13, B14, B15 and B16. The claimants have preferred these two appeals.
2. There cannot be any doubt that the best evidence of the market value of the acquired land is afforded by transactions of sale in respect of the very acquired land, provided of course there is nothing to doubt the authenticity of the transactions. In the present case we have two such transactions of sale of parcels of the acquired land, Exhibits B11 and B-12. The learned Subordinate Judge relied upon them in assessing the compensation. The High Court also recorded a finding that Exhibits B-11 and B-12 were genuine transactions. The High Court however, thought that the price under these documents might have been inflated as it was known even in 1948 that some land was proposed to be acquired for providing houses to the sweepers and scavengers. We are afraid that this was pure speculation on the part of the High Court. In fact what was proposed to be acquired in 1948 was some other land. That proposal was later abandoned and there is nothing to indicate that there was any proposal for the acquisition of land in T. S. No. 1123 at the time when the sales under B-11 and B12 were effected. The Land Acquisition Officer who gave evidence as R. W. 1 stated as follows: "I have no personal knowledge to state that the transactions were not genuine or that the price mentioned in the sale deeds are not genuine. We also have no other evidence to show that the said transactions were not genuine."
3. The High Court appeared to place reliance upon Exhibits B-1 to B-10. We consider the High Court was wrong in thinking that Exhibits B-1 to B-10 could afford proper guidance in the matter of assessing compensation for the acquired land. Apart from the circumstance that they r
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